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WHAT IS IT? Bioventix is a biotechnology company that develops so-called monoclonal antibodies from sheep for use in diagnosing critical diseases.
Antibodies, a key part of the body’s immune system, are proteins found in the blood that search out and try to destroy diseases. However, they can also be used to detect illnesses in patients.
Bioventix has developed sheep monoclonal antibodies that are used to test for vitamin D deficiencies, cancer and testosterone levels, as well as in drug and alcohol testing. The firm floated on the AIM market in 2014.
WHAT’S THE LATEST? In October, the Surreybased firm released an impressive set of results for the year ending June 30.
The firm had boosted its revenue by 31pc to £7.2m and its profits by 37pc to £5.7m. It also reported £6.1m in cash reserves.
Siemens Healthineers, a subsidiary of the German industrial giant, is using its antibodies in a test for heart attacks.
WHO BACKS IT? Those that will be most familiar to investors in Britain are investment giants Schroders, Miton Asset Management and Jupiter Asset Management.
WHY SHOULD YOU INVEST? Since it floated on AIM in 2014, its share price has risen more than 320pc to over £25. It also pays a dividend. In October, investors were awarded a special dividend of 40p a share.
Ben Yearsley, of adviser Shore Financial Planning, says: ‘Bioventix is unusual in that it is a small biotech company that makes a profit, pays a dividend and generates quite a lot of cash. When you look at its performance, it is very strong.’ AND WHY YOU SHOULDN’T INVEST Biotechnology firms are notoriously risky investments, so tread carefully. Experts have also questioned if the firm can grow as quickly in the future as it has in the past few years.
Yearsley adds: ‘It’s quite risky buying individual biotech firms, and there are plenty of cases of people having their fingers burned in the past.
‘If you’re keen on investing in the sector, it’s good to buy a broad basket of shares to spread out the risk.’